David Tigges, Managing Shareholder and CEO of McNair Law Firm

LowcountryBizSC:

What is your education and background?
 
David Tigges:
I started my professional career as a social studies and civics teacher before deciding to go to law school. I worked for a couple of years at a boutique law firm in Savannah, Georgia before returning to William & Mary University to obtain a Masters of Law (LLM) in taxation.  I was hired by Deloitte & Touche, the international accounting and consulting firm, in their tax department.  Seventeen years ago, I moved to Hilton Head to practice law at Bethea, Jordan & Griffin, the largest law firm in Beaufort County.  Five and a half years ago, Bethea, Jordan & Griffin completed a very successful merger with McNair Law Firm.

LowcountryBizSC:
What attracted you to Hilton Head, SC?

David Tigges:
As is the case with many, the reason for moving was a quest for warmer weather and a better quality of life. I had fond memories of Hilton Head Island from my childhood, so I focused my search there. 

LowcountryBizSC:
What is your best takeaway from a law degree?

David Tigges:
It’s not what people might think — a dramatic litigator making a closing argument in a high profile trial. Law school teaches you how to think logically and rationally, a valuable tool to have in business.

LowcountryBizSC:
How did you get to become the managing shareholder and CEO of McNair Law Firm?  You have big shoes to fill.
 
David Tigges:
There is nothing fancy about the process of electing a managing shareholder in our firm; it is simply a vote to see whether a majority of the shareholders want you to be the managing shareholder.  I do feel as though I have big shoes to fill.  There have been just four leaders in our firm’s history: Governor Robert McNair, Wayne Corley, Bill Youngblood, and now me.

When Bill Youngblood indicated that he was going to step down, I decided to put my hat into the ring.  As the managing partner at the Hilton Head office over a staff of 70, I felt I had the experience to do the job. I enjoy management and serving our employees and clients in a leadership role. This is a firm where everyone gets along and has great respect for all employees of the company. I am honored to take on this new role. 

LowcountryBizSC:
What was the original vision for McNair Law Firm?  Will that change under your leadership?

David Tigges:
Back in the 1960’s, then Governor McNair witnessed first hand the beginnings of large companies showing an interest in doing business in South Carolina, and was disheartened to see those same companies looking to larger cities for advice on complex legal matters.  Governor McNair started the firm in 1971 with a vision of creating a business law firm in South Carolina to serve this state’s need for legal representation at the highest levels. In fact, the very day that Governor McNair concluded his six year term as Governor, he and his new law partners, Jim Konduros and Wayne Corley, moved into their new offices and opened for business.  McNair Law Firm has been successful with that vision and philosophy for 39 years, and it will not change under my leadership.

LowcountryBizSC:
How has the law firm been affected by the economic downturn?

David Tigges:
Law firms are a reflection of the clients that they serve, and there is still a lot of pain out there in the economy. People need lawyers regardless of whether the economy is up or down, so while we are doing fine, it is very troubling to see how much our clients are suffering.  McNair has been very conservatively managed over the years when it comes to our balance sheet, so we are in a strong financial standing coming out of this recession.

It’s not a big surprise that our real estate practice is down and bankruptcy work is up. Much of our real estate work is now helping unwind financial arrangements that were set up during the good years. I am concerned about the uncertain future of coastal real estate as well as commercial real estate going forward. 

Cash flow is a significant issue in this economy. Clients are slower paying their bills so accounts receivable have gone up. As many other law firms and businesses are doing, we are requiring more money upfront from our clients. 

Lastly, this downturn has created the worst job market for young lawyers that we have seen in years. Young students who are considering a law degree need to think long and hard about what specific contribution they want to make to the practice of law before they spend a lot of time and money to become a lawyer.  There are no guarantees of full employment any more coming out of law school.  

LowcountryBizSC:
Is there price pressure on the hourly rates that you charge your clients, given the economic climate?

David Tigges:
We have not seen price pressure with our existing clients, in fact, it’s the opposite: clients want experienced legal advice and are willing to pay a premium for it.  It is very competitive out there right now, so clients are really pushing for customer service. Lawyers have to be at the top of their game if they are to retain clients.

We are seeing price pressure in the market in new requests for proposals (RFP’s).  As our rate structure is already lower than the big regional firms, we see this more as an opportunity for McNair.

LowcountryBizSC:
Have there been other bright spots in McNair’s practice areas over the years?

David Tigges:
Going right back to the early history of the law firm, we have always been strong at public finance. In 1972, under the leadership of Wayne Corley, the law firm undertook a major bond financing project for the South Carolina Public Service Authority and ever since, this has been a shining star for the law firm that has also proved to be rather recession-proof. 

The other founding partner, Jim Konduros, was instrumental in building a substantial practice in administrative law and governmental affairs that has remained another key strategic practice area for the firm. Our motto for 39 years has been that McNair is at the intersection of business and government.  Now that we will be moving to the new building at Main & Gervais, this will physically be the case.

LowcountryBizSC:
Talk a little more about the move. 

David Tigges:
We are an equity partner in the new building at Main and Gervais and we are very much looking forward to moving into our new space just after the July 4th weekend.  We have been in our current space for 32 years so planning to move 150 people, most of whom have accumulated a significant amount of paper, is proving to be no small task!  The process of planning this new space has given us the opportunity to imagine our ideal workspace for the next 32 years.  It will be cleaner, fresher, with better security offered and the current state of the art cabling for the latest technology.  It will be more reflective of a dynamic law firm with an eye to the future, and a perfect fit for our law firm.

LowcountryBizSC:
What is your leadership style? What leaders have influenced your career?

David Tigges:
It’s always better to ask those around you about your leadership style, but my hope is that people will say that I am direct, that they know where I stand on an issue. 

Our former managing shareholder, Bill Youngblood was a great role model and friend to me.  He is a calm, reasoned man; slow to pass judgment, yet firm when he does. These are definitely qualities that I would like to emulate.  I was also privileged to have been mentored by Cary Griffin, who many consider to be the top real estate lawyer in South Carolina history. 

LowcountryBizSC:
Are there particular challenges leading a law firm?

David Tigges:
Lawyers are trained to be adversaries, they are opinionated, strong-willed, and very bright.  So yes, leading a law firm poses particular challenges.  But this is a firm where everyone is treated with dignity and respect.  A leader’s job is to surround himself with smart, talented people, so when you look at it that way, it’s an incredible opportunity.

LowcountryBizSC:
What percentage of your time will be spent practicing law versus managing the firm?

David Tigges:
In my new role, I will effectively be a full-time manager, spending just 10% of my time on the traditional practice of law. It is hard to serve two masters – the law firm and your clients – at the same time. McNair differs from many other law firms in that we are set up as a corporation, not as a limited liability company (LLC).  As such, our managing shareholder is also the Chief Executive Officer (CEO) of the firm with broader powers than a managing partner typically would have in an LLC. In the latter, you might see more of a committee approach to decision-making.  In an effort to include everybody in a discussion, decision-making can be slowed down, and ultimately, you take talented lawyers away from their practice areas for significant periods of time. 

There are advantages and disadvantages to both structures, but we like the one that we have in place.  At McNair, one person is ultimately held responsible for decisions – the CEO. The buck stops here, with me, so to speak. 

LowcountryBizSC:
How do you attract and retain top talent at the firm?

David Tigges:
At a law firm, as with any other business, you have to pay based on production. If you have someone who is a producer, you have to offer them a financial package that will incent them to stay.

LowcountryBizSC:
What opportunities do you see for the law firm over the next five years?

David Tigges:
Any growth will be strategic and we will only move into areas that will be a good fit for our law firm.  Currently, we are at 125 attorneys and I can see the law firm growing to 170 attorneys over the next five years.  The ultimate measure of our success as a business is not the number of lawyers that we have, but rather whether we are returning earnings to the shareholders. I would rather remain where we are in terms of attorneys than increase the number of attorneys and dilute the earnings per share. 

Many law firms are struggling in this economy so if it’s a good fit, we may take advantage of lateral hirings. Partners in other firms may be receptive to a better offer from a more stable firm. 

We will continue to look for new opportunities in unserved (or underserved) areas of South Carolina, in smaller cities. We already have a presence in Charlotte, but I think we have an opportunity to establish more of a foothold in that market.  We will also keep our eyes open for additional opportunities in North Carolina. 

LowcountryBizSC:
How does McNair support diversity?

David Tigges:
One of the great legacies of Governor McNair was his acceptance of other people and how he promoted diversity in this state.  We are all extremely proud to carry on that tradition and it is something that we work at each and every day.  McNair supports all of its lawyers in their efforts to promote diversity around the state.

But there currently are not enough minority lawyers in South Carolina, and this problem will have to be resolved with serious solutions over the next decade. 

LowcountryBizSC:
What are some of your outside interests?

David Tigges:
My goal in life was not to be a lawyer; it was to be a center fielder in the major leagues. I love baseball and I spend all of my available time outside of the office coaching my nine year old twin sons’ travel baseball team. If I could do that all day long, I would. 

LowcountryBizSC:
What makes a great lawyer? 

David Tigges:
This is a relationship business and clients like to get to know their attorney.  The more people you know, they more business that you will have. There is a direct relationship between lawyers who are most active in the community, and the ones who are the most successful. A great lawyer is someone who genuinely likes working with other people.

David J. Tigges

Managing Shareholder

As Managing Shareholder David is the Firm’s Chief Executive officer. An Ohio native, he graduated from the University of Toledo and Capital University. He served as an intern for the Ohio Supreme Court and the Federal District Court in Columbus, Ohio. He practiced law in Savannah, Georgia before attending William & Mary Marshall-Wythe School of Law. He also practiced with the accounting firm of Deloitte & Touche in Philadelphia, Pennsylvania until relocating to Hilton Head Island and where he began practicing with Bethea, Jordan & Griffin, P.A. From 2004 through 2009 David served as the Unit Manager of the Beaufort County operations of the Firm.

David served as Treasurer, Assistant Secretary, member of the Management Committee, and managed the Business Law Department of Bethea, Jordan & Griffin, P.A. from 1999 to 2004.He was responsible for the negotiation and implementation of the merger between Bethea Jordan & Griffin, P.A. and McNair Law Firm, P.A. in August 2004.

His practice concentration has been in the areas of Business Law, Tax Law, and Mergers and Acquisitions.